Related Content: Powering the Future: The GCC’s Strategic Shift to Sustainable Energy
Fitch Ratings-Dubai-03 July 2024: GCC countries are expanding their renewable energy capacities at varying speeds, leveraging abundant solar and wind resources to diversify beyond hydrocarbons and combat climate change, Fitch Ratings says in a new report. In terms of the installed capacity, the UAE has been at the forefront of investment in renewable energy.
The region has been a leader in low-cost renewable energy, driven by such factors as strategic project designs and government support, which have fostered a conducive environment for numerous ongoing and future renewable projects.
The transition is accompanied with evolving policies and regulatory frameworks designed to boost economic growth, diversify funding sources, and increase debt capacity.
‘Powering the Future: The GCC’s Strategic Shift to Sustainable Energy’ is available at fitchratings.com or by clicking the link above.
Contact:
Ehab Nassar
Director
+971 4 424 1273
ehab.nassar@fitchratings.com
full report (requires subscription): https://www.fitchratings.com/research/infrastructure-project-finance/powering-future-the-gcc-strategic-shift-to-sustainable-energy-03-07-2024
SUMMARY
Region Embraces Solar and Wind Power: GCC countries have been actively developing their renewable energy capacities in recent years. This is part of a strategic shift to diversify energy sources beyond hydrocarbons, aligning with the global push towards renewables to combat climate change. The region has abundant solar and wind resources, which GCC countries are exploiting at varying speeds to integrate renewables into their energy mix and hit ambitious targets. Unpacking the GCC’s Formula for Low-Cost Leadership: While solar PV has been the most widely used and cheapest renewable energy technology over the past decade, there has been a recent focus on wind power in the region. Saudi Arabia has established its presence with the largest wind farm in the Middle East, Dumat Al Jandal, and the recent record-setting AlGhat wind project. In terms of installed capacity, the UAE has been at the forefront of investment in renewable energy, with projects such as the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, followed by Qatar. The region’s sustained leadership in low-cost renewable is attributed to such factors as the availability of affordable desert land, low labour costs, favourable tax policies, and economies of scale from large projects, strategic project tender designs and government support. These factors have created a favourable environment, with numerous projects still in the pipeline.